exclusive offering memorAndum The Villas at Mill Run · e Villas at Mill Run :: Owings Mills, MD 2...

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CBRE, Inc. | Senior Housing Services Group | Broker Lic. 00409987 | February 2015 A SENIOR HOUSING DEVELOPMENT OPPORTUNITY EXCLUSIVE OFFERING MEMORANDUM + 5.0 Acres Entitled for 100 Units of Senior Housing located in Owings Mills, Maryland e Villas at Mill Run

Transcript of exclusive offering memorAndum The Villas at Mill Run · e Villas at Mill Run :: Owings Mills, MD 2...

Page 1: exclusive offering memorAndum The Villas at Mill Run · e Villas at Mill Run :: Owings Mills, MD 2 investment overview The CBRE National Senior Housing Group has been retained on

Lake Lanier Islands

CBRE, Inc. | Senior Housing Services Group | Broker Lic. 00409987 | February 2015

A senior hous ing development opportunity

e xc lu s i v e o f f e r i n g m e m o r A n d u m

+5.0 Acres Entitled for 100 Units of Senior Housing located in Owings Mills, Maryland

The Villas at Mill Run

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i n v e s t m e n t ov e r v i e w

The CBRE National Senior Housing Group has been retained on an exclusive basis to present an opportunity to acquire nearly 5 acres of land entitled for 100 units of Senior Housing in the wealthy Owings Mills submarket of Baltimore County, Maryland. Ideally situated along a major thoroughfare in close proximity to major highways, universities, brand new developments, stable employers, attractive demographics and minimal senior housing competition, the site offers the purchaser the chance to take advantage of the many compelling opportunities this wealthy Maryland suburb has to offer.

i n v e s t m e n t h i g h l i g h t s• Entitled for 100 units of IL/AL/MC• + 5 acre site• Strong age and income qualified demographics-over 11,000 seniors age 75+

within 5 miles of the site• Well educated population in the vicinity• High area occupancy and rents• High barriers to entry and minimal new competition • Close to major development projects Foundry Row and Metro Centre, and Stevenson University

o f f e r s d u eAll offers must be submitted by Thursday, March 19th, 2015.

disclaimer. We obtained the information in this Offering Memorandum from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

dAn BAker (primary point of contact)Associate | Lic. 00409987410-244-3136 | [email protected]

dAvid rothschildExecutive Vice President | Lic. 01211079619-696-8303 | [email protected]

mAtthew whitlockSenior Vice President | Lic. 0120729978-740-0024 | [email protected]

mAry christiAnSenior Vice President | Lic. 01223961619-696-8336 | [email protected]

scott BelZFinancial Analyst | Lic. 01948569619-696-8305 | [email protected]

mAriflor BernAlClient Services Specialist | Lic. 01359437619-696-8392 | [email protected]

tinA mAchAdoClient Services Specialist | Lic. 01823473619-696-8399 | [email protected]

For additional information, please contactcBre national senior housing group

locAtion 4626 Painters Mill RdOwings Mills, MD

siZe +5 Acres

existing Zoning RAE-2 (80 units/acre permissible)

proposed unitsApproved

100 Total (Two 50-unit buildings)

proposed pArkingApproved

132 below grade spaces and 72 surface spaces

Asking price Unpriced

o f f e r i n g ov e r v i e w

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Pain

ter’

s M

ill R

oad

Red Run Blvd.

McDonough SchoolT.Rowe Price Campus

Owings Mills Mall

Hyatt Place

Hampton Inn

Hilton Garden Inn

Physicians Pavillion

Riverstone Luxury Apartments

Lakeside MillApartments

Briarwood Apartments

Atrium Village

Rite Aid

Food Lion

Metro Centre

Lakeside Blvd.

Lyons Mill Rd

Ow

ings

Mill

s B

lvd

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foundry row2 miles from Site metro centre

Less than 1 mile from Site

mcdonough schoolLess than 1 mile from Site

t.rowe price campusLess than 1 mile from Site

owings mills mallLess than 1 mile from Site

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Owings Mills, Maryland is an important and economically active part of Baltimore County. The area around the site is seeing significant revitalization and investment in the form of two major developments. Foundry Row is a $140 million, 50 acre mixed use development currently under construction, anchored by a Wegmans, and less than two miles away from the site. Metro Centre is a mixed use transit oriented development less than one mile from the site with 1,700 residential units, hotels, office, retail, and a library, within walking distance of the Owings Mills metro station, and will be over 1.2 million square feet when completed. Stevenson University serves more than 4,400 students and is three miles from the site. Reputable financial services firm T. Rowe Price has a large campus employing over 1,200 people less than a half mile from the site. This site is ideally located to take advantage of these well-known developments and well respected institutions.

A r e A ov e r v i e w

owings mill mall

Foundry Row, located 2 miles from Site

Metro Centre, located less than a mile from Site

Lakeside Mill Apartments, located next to Site

Riverstone Apartments, located next to Site

neighBorhoodIdeally located in Owings Mills, the Site is close to I-795 and the business centers of Baltimore, Columbia and Washington, DC, and conveniently situated near restaurants and shopping centers as well.

Other nearby amenities and attractions include Owings Mills Mall, Lakeside Village Shopping Center, New Town Village Shopping Center, Garrison Forest Plaza Shopping Center, Wal-Mart, Target, Sam’s Club, Macy’s, Hyatt Place, Hilton Garden Inn, AMC Owings Mills 17, and Northwest Regional Park.

trAnsportAtionMetro: Owings Mills Metro Station (2.2 mi)Bus: MTA bus stop (1 block)Airports: BWI-Baltimore/Washington Int’l. Thurgood Marshall Airport (18 mi)Train: Penn Station (20 mi)Major highways: I-795

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d e m o g r A p h i c s m A p & h i g h l i g h t s

• There are 2,510 seniors ages 75+ within five miles of the site with incomes over $50,000

• Approximately 56% of the adult children (potential caregivers) age 45 to 54, within a five mile radius, have

average incomes of $75,000 or higher – approximately 7,984 people

• The 2019 estimated population over 65 years old within a one mile radius is 1,367 (11.5% of the population)

• The 2014 average household income within a one mile radius is $96,252

• 2014 estimated average housing value within a five mile radius is $309,822

• The population within one mile of the site is expected to grow by 10.42% from 2014 to 2019

2015 Average Household Incomeestimated by Block Group

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Copyright © and (P) 1988–2012 Microsoft Corporation and/or its suppliers. All rights reserved. http://www.microsoft.com/streets/Certain mapping and direction data © 2012 NAVTEQ. All rights reserved. The Data for areas of Canada includes information taken with permission from Canadian authorities, including: © Her Majesty the Queen in Right of Canada, © Queen's Printer for Ontario. NAVTEQ and NAVTEQ ON BOARD are trademarks of NAVTEQ. © 2012 Tele Atlas North America, Inc. All rights reserved. Tele Atlas and Tele Atlas North America are trademarks of Tele Atlas, Inc. © 2012 by Applied Geographic Solutions. All rights reserved. Portions © Copyright 2012 by Woodall Publications Corp. All rights reserved.

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Copyright © and (P) 1988–2012 Microsoft Corporation and/or its suppliers. All rights reserved. http://www.microsoft.com/streets/Certain mapping and direction data © 2012 NAVTEQ. All rights reserved. The Data for areas of Canada includes information taken with permission from Canadian authorities, including: © Her Majesty the Queen in Right of Canada, © Queen's Printer for Ontario. NAVTEQ and NAVTEQ ON BOARD are trademarks of NAVTEQ. © 2012 Tele Atlas North America, Inc. All rights reserved. Tele Atlas and Tele Atlas North America are trademarks of Tele Atlas, Inc. © 2012 by Applied Geographic Solutions. All rights reserved. Portions © Copyright 2012 by Woodall Publications Corp. All rights reserved.

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c o m p e t i t i v e ov e r v i e w

Atrium Village Arden Courts of Pikesville Emeritus at Pikesville Sunrise of Pikesville Woodholme Gardens

City, State Owings Mills, MD Pikesville, MD Pikesville, MD Pikesville, MD Pikesville, MDOwner / Manager Senior Lifestyle Corp. HCR ManorCare Brookdale Sunrise Senior Living Compass Pointe HealthcareCommunity Type Majority IL Memory Care Majority AL Majority AL Majority AL/MCDate Opened 2001 1998 1999 1996 2010Total #of Units 264 158 109 79 80Occupancy 94% 100% 100% w/waiting list 99% 93%

QUANTITY OF UNIT TYPESIL 186AL 58 85 61 80 AL/MCMC 20 56 24 18NC

MONTHLY BASE RATES IL Studio $2,400 IL 1 BR $3,050-$3,350 IL 2 BR $3,650 AL Studio $2,600-$3,100 $3,485 $3,891 Starting at $3,195 AL 1 BR $4,200-$4,800 $3,795 $4,043 AL 2 BR $4,705 $4,104-$4,560 MC $6,150 (all inclusive) $6,400 (all inclusive)

ADDITIONAL FEES

Levels of AL Care L1: $650; L2: $850; L3: $1,150; L4: $1,450; L5: $1,750; L6: $2,050

L1: $547; L2: $850; L3: $1,150; L4: $1,450 Starting at $450

Medication Mgmt $365 Second Person Fee $695 IL; $795 AL Community Fee 1 month’s rent $3,000 $1,750 $1,500 Respite (per day fee) $129 IL; $159 AL $150

The Villas at Mill Run

Arden courts at pikesville

emeritus at pikesville

Atrium village

sunrise of pikesvillewoodholme gardens

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r e n d e r i n g

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A r c h i t e c t u r A l e l e vAt i o n s

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A p p r ov e d d e v e lo p m e n t p l A n

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s A l e l e A s e d i s c lo s u r e

Property: 4626 Painters Mill Road Ownings Mills, MD 21117

Flood Zones. According to Federal Emergency Management Agency, Fidlety Na-tional Flood Map No. 2400100220D dated August 2, 2011, the Property is not located in a flood zone or in a dam inundation zone. Many lenders require flood insurance for properties located in flood zones, and government authorities may regulate development and construction in flood zones. Whether or not located in a flood zone, properties can be subject to flooding and moisture problems, especially properties on a slope or in low-lying areas. Buyers and tenants should have their experts confirm whether the Property is in a flood zone and otherwise investigate and evaluate these matters. Flood Zone Designation: Zone X.

Hazardous Materials and Underground Storage Tanks. Due to prior or current uses of the Property or in the areas or the construction materials used, the Property may have hazardous or undesirable metals (including but not limited to lead-based paint), minerals (including but not limited to asbestos), chemicals, hydrocarbons, petroleum-related compounds, or biological or radioactive/ emissive items (in-cluding but not limited to electrical and magnetic fields) in soils, water, building components, above or below-ground tanks/containers or elsewhere in areas that may or may not be accessible or noticeable. Such items may leak or otherwise be released. Asbestos has been used in items such as fireproofing, heating/cooling systems, insulation, spray-on and tile acoustical materials, floor tiles and cover-ings, roofing, drywall and plaster. If the Property was built before 1978 and has a residential unit, sellers/landlords must disclose all reports, surveys and other information known to them regarding lead-based paint to buyers and tenants and allow for inspections (42 United States Code Sections 4851 et seq.). Sellers/land-lords are required to advise buyers/tenants if they have any reasonable cause to believe that any hazardous substance has come to be located on or beneath the Property (California Health and Safety Code Section 25359.7), and sellers/landlords must disclose reports and surveys regarding asbestos to certain persons, including their employees, contractors, buyers and tenants (California Health and Safety Code Sections 25915 et seq.); buyers/tenants have similar obligations. If sellors/landlords know of the presence of mold that exceeds permissible exposure limits or poses a health threat, they are required to disclose that information in writ-ing (California Health and Safety Code Section 26140). For residential properties, all contracts for sale must include certain mandated disclosures regarding gas and hazardous waste pipelines. (California Civil Code Section 2079.10.5.) Have your experts investigate and evaluate these matters.

Americans with Disabilities Act (ADA). The Americans With Disabilities Act (42 Unit-ed States Code Sections 12101 et seq.) and other federal, state and local require-ments may require changes to the Property. All commercial property owners and/or lessors are required to state on every lease form or rental agreement whether the property has undergone inspection by a Certified Access Specialist (CASp), and, if so, whether the property has or has not been determined to meet all applicable construction-related accessibility standards. (California Civil Code Section 1938.) Have your experts investigate and evaluate these matters.

Taxes. Sales, leases and other real estate transactions can have federal, state and local tax consequences. In sales transactions, Internal Revenue Code Section 1446 requires buyers to withhold and pay to the IRS 10% of the gross sales price within 10 days of the date of a sale unless the buyers can establish that the sellers are not foreigners, generally by having the sellers sign a Non-Foreign Seller Affidavit. Depending on the structure of the transaction, the tax withholding liability can ex-ceed the net cash proceeds to be paid to the sellers at closing. California imposes an additional withholding requirement equal to 3 1/3% of the gross sales price not only on foreign sellers but also out-of-state sellers and sellers leaving the state if the sales price exceeds $100,000. Withholding generally is required if the last known address of a seller is outside California, if the proceeds are disbursed outside of California or if a financial intermediary is used. Have your experts investigate and evaluate these matters.

Broker Representation. CBRE, INC. is a national brokerage firm representing a variety of clients. Depending on the circumstances, CBRE, INC. may represent both the seller/landlord and the buyer/tenant in a transaction, or you may be interested in a property that may be of interest to other CBRE, INC. clients. If CBRE, INC. rep-resents more than one party with respect to a property, CBRE, INC. will not disclose the confidential information of one principal to the other.

Seller/Landlord Disclosure, Delivery of Reports, Pest Control Reports and Com-pliance with Laws. Sellers/landlords are hereby requested to disclose directly to buyers/tenants all information known to sellers/landlords regarding the Property, including but not limited to, hazardous materials, zoning, construction, design, engineering, soils, title, survey, fire/life safety, and other matters, and to provide buyers/tenants with copies of all reports in the possession of or accessible to sell-ers/landlords regarding the Property. Sellers/landlords and buyers/tenants must comply with all applicable federal, state and local laws, regulations, codes, or-dinances and administrative orders, including, but not limited to, the 1964 Civil Rights Act and all amendments thereto, the Foreign Investment in Real Property Tax Act, the Comprehensive Environmental Response Compensation and Liability Act, and The Americans With Disabilities Act. If a pest control report is a condition of the purchase contract, buyers are entitled to receive a copy of the report and any certification and notice of work completed. Sellers/landlords must disclose reports and documents regarding a Property’s energy use when selling, leasing, or financing an entire commercial building (20 California Code of Regulations Sections 1680 et seq.)

Property Inspections and Evaluations. Buyers/tenants should have the Property thor-oughly inspected and all parties should have the transaction thoroughly evaluated by the experts of their choice. Ask your experts what investigations and evaluations may be appropriate as well as the risks of not performing any such investigations or evaluations. Information regarding the Property supplied by the real estate brokers has been received from third party sources and has not been independently verified by the brokers. Have your experts verify all information regarding the Property, in-cluding any linear or area measurements, the availability of all utilities, applicable zoning, and entitlements for the intended use. All work should be inspected and evaluated by your experts, as they deem appropriate. Any projections or estimates are for example only, are based on assumptions that may not occur and do not represent the current or future performance of the property. Real estate brokers are not experts concerning nor can they determine if any expert is qualified to provide advice on legal, tax, design, ADA, engineering, construction, soils, title, survey, fire/life safety, insurance, hazardous materials, or other such matters. Such areas require special education and, generally, special licenses not possessed by real estate brokers. Consult with the experts of your choice regarding these matters.

CONSULT YOUR ADVISORS – This document has legal consequences. No rep-resentation or recommendation is made by Broker as to the legal or tax conse-quences of this Agreement or the transaction(s) which it contemplates. This form is not intended to substitute for any disclosures the law requires that the parties make to each other. These are questions for your attorney and financial advisors.